First Time Buyer's Guide To Mortgages

lush_walrus

Well done Andy...Good to see you still around!

AndrewSmith

lush_walrus wrote: »

Well done Andy...Good to see you still around!

Thanks Lush,

Not seen you for ages, hows it going in the worl of selling houses?

:beer:

dunnomate

Yeah - good to see you Andy !!!

SirSaverOBE

Hello!

I would be very grateful for some advice. My wife and I are now looking to buy our first house, and will be looking to get an Agreement In Principle in a couple of months time.

FIRST QUESTION: I have worked like billy-o to pay my debts off but still have a bit of a loan that I pay off each month, which doesn't seem to have too much of an impact on the loan calculators of various bank's websites - BUT -

- BIG BUT - I still have an overdraft of £1500. How do lenders treat overdrafts? With credit card balances, it's easy, as they dock the amount they lend according to the balance you owe and monthly payments on that balance. My overdraft is partly interest free and costs me next to nowt. Will they treat this as credit as they do with cards?

ALSO - do they do a full credit check and the check of your statements, payslips, credit etc. when you do an AIP or do they wait until you get the formal offer?

Any advice gratefully received!

Sir Saver OBE

AndrewSmith

SirSaverOBE wrote: »

Hello!

I would be very grateful for some advice. My wife and I are now looking to buy our first house, and will be looking to get an Agreement In Principle in a couple of months time.

FIRST QUESTION: I have worked like billy-o to pay my debts off but still have a bit of a loan that I pay off each month, which doesn't seem to have too much of an impact on the loan calculators of various bank's websites

With this it also depends on how long the loan has to run, generally if it is less than 12 months the majority of lenders will ignore the monthly payments to it.

- BIG BUT - I still have an overdraft of £1500. How do lenders treat overdrafts? With credit card balances, it's easy, as they dock the amount they lend according to the balance you owe and monthly payments on that balance. My overdraft is partly interest free and costs me next to nowt. Will they treat this as credit as they do with cards?

Some do some don't. With overdrafts there are no hard or fast rules. It will vary from lender to lender. It will also depend on the rest of the case and whether you are asking, for example, for a high income multiple.

ALSO - do they do a full credit check and the check of your statements, payslips, credit etc. when you do an AIP or do they wait until you get the formal offer?

This again will vary from lender to lender. It is possible that a lender, depending on who you select, will conduct a full credit search at AIP however very unlikely that you will be asked for any documentory evidence of income etc until you submit a formal full application. However if you give accurate information at AIP stage then there should be no issue when they do request all the information on full application.

Hope this helps


Andrew

tonetone

Sorry to the moderators if I initially posted in the wrong place so I think it might be useful to post here too. Thanks everyone.

Hi, my name is Tony. I will be honest, I haven't found a property and at this stage am not even looking at agreement in principle or a quote. Would it be ok just to chat for some advice?

I have quite a few questions. Me and my partner are looking to buy a property in Cardiff Wales. We would be looking/ready to buy probably in the new year probably around may/june time. We both earn 15k gross and could realistically afford £5-650 a month repayments. The property would ideally be around 80-100k.

The questions really would be, at this stage as a first time buyer does the term of the mortgage really matter? In the sense that we would not be staying in the house for more than 3 years.

Other than differing repayments what would be the best option to go for between capital and interest only? It is unlikely we could save a big enough deposit for interest only. What about the various home start mortgages also, obviously it increases the total amount but would it be worth it?
Also we are both graduates, are the offers aimed at us worth it?
For deposit by next year I would imagine 5-10% of anything up to 100k would be achievable without problems.

But realistically the difference of a 20 year term or a 30 year term would only be the monthly repayments? I mean after we sold the house after 3 years and moved on we would be back to square one, only with more capital (hopefully).

For people who do plan to buy for a few years and then move on would it be advisable to take out a particular mortgage?

Thank you so much in advance for any help, advice or guidance. I sincerely appreciate it.

Tony

tonetone

anyone?

thanks everyone

janskar123

increase in the real estate property market many exciting new developments are taking place in the mortgage market There are many types of mortgages available in the market that suits the specific needs of borrowers

amyparr

Hey guys,

Just looking for some advice really. I'm not in a position to buy a property, yet, but am considering all my options as my financial situation has recently changed.

I am currently studying and will be starting training as a lawyer in London in March 2009, as will my partner. He has recently inherited quite a large sum of money and is thinking of investing it in a flat for us to live in in London. I'm still keen though to get on the ladder as obviously he will be owning this property outright, and he's also keen on the idea of buying to let with our joint salaries.

Our joint incomes will be roughly £70k in 2009, £80k in 2010, and then a whopping £120k + after 2011. We both have student loans (mine roughly 12k, his slightly less) but no other debts.

We'd be looking to buy somewhere in London to rent out, whilst living in the flat he will buy outright.

Do you think it would be wise to wait until 2011 when we will be earning a lot more, or would it be better to get going asap i.e. next year so we don't miss out? Obviously property prices, especially in London, are increasing all the time, and I expect the Olympics will have an impact too by 2011.

What do you guys think?

mjdh1957

Hi Amy,

You'd be better starting your own new thread about this - and be prepared to get 100 different opinions from 50 different people.

My penn'orth is that it's not a good time to be looking for buy-to-let - the returns are higher from simple savings accounts and the risks far less.

House prices will either go up, stay the same, or fall..... my crystal ball is a bit hazy at the moment!